Meta must pay $25 billion to New Mexico after a jury found the tech giant guilty of nearly 44 million violations of state consumer protection laws.

The largest fine to ever hit Meta came after New Mexico Attorney General Raúl Torrez declined to join an $18 billion settlement Meta reached earlier this year with attorneys general in nearly all states.

In his opinion Wednesday, US district court judge Francis J. Mathew said there was no “bright line rule” for determining the appropriate penalty for Meta's repeated and willful deception of users since 2010 about their “control of data, third-party data misuse, misinformation, hate speech, and equal enforcement.”

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Hoping to quell criticism, Meta has dropped the word “train” from its “streamlined” commercial terms of service that kick in on October 30.

Last week, Meta faced backlash after legal experts warned that the tech giant’s sweeping new commercial terms of service seemed to give Meta permission to endlessly scrape websites linked on business pages. Talking to Nieman Lab, experts suggested that Meta could possibly use the policy to avoid millions in licensing fees from news organizations by requiring all business users to share a wealth of AI training data simply for running a business page.

A Meta spokesperson confirmed that Meta did not alert users to the changed language following backlash. This potentially only adds to confusion ahead of the policy rollout. In response to backlash, Meta's spokesperson provided a statement to Ars, acknowledging Nieman Lab's initial report but not its follow-up report reiterating experts' concerns:

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In copyright lawsuits over AI training, Meta has spent weeks blaming staff for downloading torrents. The company has now been ordered to name executives who authorized decisions to pirate books from shadow libraries like Anna’s Archive and LibGen, TorrentFreak reported.

In a discovery order impacting a class action raised by book authors—including Richard Kadrey and Sarah Silverman—as well as a lawsuit from publisher Entrepreneur Media, Magistrate Judge Thomas Hixon largely agreed that Meta must clearly identify key decision-makers. Following testimony from Meta staff who downloaded torrents, the order could expose a wider range of supervisors, managers, and executives whom staffers said greenlit the piracy.

Meta had been hoping to avoid detailing the chain of command, particularly for leadership involved in early AI training. According to a Meta court filing, its initial efforts to compile massive AI datasets were managed through an “informal approach" where supposedly nobody with authority made any decisions. Instead, Meta insisted that a “decision” was “made only in the sense” that some staffers “technically” downloaded torrents.

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Muse, the new general-purpose AI agent from Meta, can expose sensitive information when users share conversations through web links, researchers reported Monday. In response to questions from Ars about the behavior, Meta said it's suspending the sharing feature while the company reviews it and considers making changes.

Like many online services, Muse has allowed users to share searches, conversations, images, and similar content with other people. Such share features usually involve clicking an option to create a unique URL that anyone can use to load a page hosting the content. To keep potentially sensitive information from being accessible to unintended people, the URLs typically contain a long sequence of text that can’t be easily guessed.

A single query is all that's required

Muse, which Meta CEO Mark Zuckerberg said last month was “built from the ground up for privacy and security,” seems to take the same precautions. But a central design decision for constructing URLs has made the links easy to discover. As a result, researchers from security firm Claroc said they were able to enumerate 6,800 links Muse users created for sharing conversations with others. After opening a few hundred of them, the researchers found information that was clearly not intended to be publicly available, including:

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Some Ray-Ban Meta smart glasses were recording people’s conversations without the wearer knowing. The recordings occurred without users saying the prompt phrase (“Hey, Meta”), in a bug that Meta says has been fixed.

This week, some users reported online that their Ray-Ban Metas were recording without their consent. A person going by Kindly-Audience-137 on Reddit, for example, said this happened to them across three Meta Ray-Bans and that they had the “Respond without Hey Meta” setting turned off. The person said the Meta AI app “saves audio recordings and text transcripts of these conversations in my conversation history.”

“I believe this deserves a serious technical investigation. Customers should not have to wonder whether their private conversations are being captured when they have not intentionally activated their glasses’ AI assistant,” the Reddit user said.

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Legal experts are sounding alarms that Meta will soon update its commercial terms to require business accounts to allow Meta to train AI on their linked website content, not just their social media posts.

Kicking in on October 30, the TOS update won’t allow businesses to opt out, instead suggesting that businesses stop using Meta services if they won’t agree to let Meta bots freely crawl their linked content.

As Nieman Lab reported Thursday, this will affect all business accounts but is particularly shocking for news publishers who could perhaps charge Meta millions in licensing fees to continually access their articles for AI training. Currently news organizations are fighting a battle with OpenAI over whether such training without licensing is fair use, and Meta's terms seemingly risk granting it sweeping permissions, no matter which way the court leans.

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